Buiulders Outlook 2019 Issue 4

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National, State & Local Building Industry News 2019: Issue 4

HOME BUILDING MARKET NOW: First-Time Home Buyers Battle Rising Prices, Seek Better Homes NAHB

As the housing industry celebrates New Homes Month in April, recent data from the American Housing Survey (AHS) confirms nearly two-thirds of first-time home buyers say a better home is the top reason for moving, followed by household formation, 61 percent and a better neighborhood, 49 percent. First-time home buyers make up 37 percent of all households who purchased homes in the two years preceding the release of the 2017 AHS, down from 39 percent in the 2015 AHS. The median price of homes purchased by recent home buyers, including first-time buyers and previous home owners, known as trade-up buyers, increased by 10 percent from the 2015 AHS. “First-time home buyers are eager to move to better homes and neighborhoods, yet home prices remain a challenge,” said National Association of Home Builders (NAHB) Chairman Greg Ugalde, a builder and developer from Torrington, Conn. “Public policies and incentives that support home affordability can help buyers find a home that fits their lifestyle and family.” Home builders recognize the complexity of factors that contribute to higher home prices and the cost of housing. In today’s market, issues such as the supply of land; federal, state and local regulatory requirements; and a shortage of skilled labor makes it difficult to increase the supply of affordable housing. The demographics of first-time and trade-up home buyers remained largely unchanged from the 2015 AHS: the typical home buyer was 40 years old; first-time buyers had a median age of 32, compared to a median age of 47 for trade-up buyers. Twenty-seven percent of recent home buyers were racial or ethnic minorities, about the same as in the 2015 AHS. In a positive sign for the spring home buying season, the Federal Reserve last week signaled that it envisions no rate increases in 2019 and only a single rate hike in 2020. While public policies to improve housing affordability are needed, the recent Fed announcement will help housing markets this year.

The Changing Demographics of Firsttime Homebuyers www.realtrends.com

Single women are one of the fastestgrowing demographics in the housing market, according to realtor.com research. The future of real estate will be significantly influenced by women, millennials and Hispanics, according to realtor.com®‘s analysis of first names on 2018 home sales deeds. Single women are one of the fastestgrowing demographics in the housing market, according to the data. Although older Baby Boomer and Silent Generation women are leading the charge, the increase in deeds with female names is particularly visible when comparing genders within the millennial generation. Looking solely at names with a peak year between 1981 and 1997, millennial female names are outpacing millennial male names, with home sales with female names beating male name home sales by 1.5 percent (6.9 percent versus 4.4 percent on average year-over-year, respectively). Seven of the top 10 fastest growing buyer names are predominately millennial female names, and all of them peak in the 1980s and 1990s. Overall, Hannah, Austin, Alexis, Logan, and Taylor — of which three are predominantly female names — were the top five fastest growing first names on home sales deeds in 2018, with their frequency seeing an average increase of 22 percent from 2017. While Michael, John, David, James, and Robert were still the top five first names on sale deeds by sheer volume, these names saw a 3 to 5 percent decline over 2017. Millennials are NOT the rent generation In 2018, home sales with millennial names1 increased 5.3 percent, followed by Gen X names at 0.8 percent. Names of Boomers (born 1946 to 1964) and the Silent Generation (born before 1945) fell 2 percent and 3.5 percent, respectively. Geographically, millennial buyer names are particularly overrepresented in Kansas, Indiana, Louisiana, Missouri, and Utah – states where housing affordability remains

above national levels – confirming that jobs and availability of entry level homes act as magnets for young buyers. The rise of Hispanic influence Deed data also shows a growth in Hispanic demographics names. In 2018, home sales associated with traditionally Hispanic names and partially Hispanic names increased 4.1 percent and 3.7 percent, respectively year-over-year. While sales with non-Hispanic names remained virtually flat at 0.1 percent year-over-year. Notably, 26 of the top 100 fastestgrowing names are traditionally of Hispanic origin. Within this category, Hispanic buyer names skew slightly older than their nonHispanic counterparts, with a median birth year of 1979 and 1982 respectively. Geographically, Hispanic buyer names are naturally concentrated in the South and Southwest. California, Texas, Nevada, New Mexico, and Arizona are among the top states, unsurprising given their proximity to Central America. On the East Coast, sales to buyers with Hispanic names are overrepresented in Florida, Illinois, and New Jersey, where demand for homes from domestic and international buyers of South American and Caribbean origin tends to be concentrated. Methodology This analysis looks at all arms-length,

residential non-corporate transactions for the period of January through September 2018. Sales for 2017 are also analyzed to enable year-over-year comparisons. Realtor.com® compared name demographic data from the Social Security Administration to deed record buyer information to understand how younger age groups are expanding their influence in the housing market. For example, the data showed that half of Hannahs were born before 1993, and 80 percent of them between 1987 and 1997, thus giving Hannah a high likelihood of being a millennial buyer. Millennial names are identified as those peaking between 1981 and 1997, Gen-X names between 1965 and 1980, Boomer names between 1946 and 1964 and Silent names before 1946. Buyer names are identified by parsing the first name from the primary name on the deed record at the time of the transfer of ownership. Middle names and last names are not parsed. In cases when the deed has more than one buyer name recorded, the information is used to identify multi-name deeds but non-primary names are not parsed. Some limitations include home buyers not always going by their first name and not all names listed as primary are necessarily being heads of the household.

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Builders Outlook

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2019 Issue 4


2019 Issue 4

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Builders Outlook

President’s Message

Sergio Cuartas President El Paso Association of Builders

Some of us enjoy the social interaction of the association board meetings, general meetings or events. Others may have joined because a builder told them they had to. Some join to expand their clientele and generate more business by networking. Some join looking for resources such as information, education or guidelines. However, I bet all of us and our organizations have a strong desire to support our mission of advocacy for our industry with policymakers. During our trip to Austin in March, we attended Rally Day. I felt immensely

Why are we members? Here is one reason. grateful and appreciative to have the opportunity to advocate for the building industry in the middle of a legislative session. Our delegation of 20 strong was able to speak to State Senator José Gonzalez and State Representatives Lina Ortega, Mary Gonzalez, Cesar Blanco and Joe Moody. We were not able to see Representative Art Fierro, but we left with his staff a well-developed, clearly stated pamphlet indicating which bills we support or oppose and why. We were able to personally explain to our legislators that our industry produces $67 billion in economic activity for the state. They now realize that the home building and remodeling industry generates over 723,000 jobs annually. They progressively understand that builders report increasing labor shortages. We were able to share with them that in Texas, home ownership is below the national average because incomes and property taxes do not allow many people to qualify to purchase a new home. In fact, Texas ranks 43rd in the nation in home ownership. We explained that per a NAHB study, a $1,000 increase in the cost of a home prices 22,000 households nationally

out of the market. On average, a small builder of 100 homes per year generates about $28 million in income, 3.6 million in taxes and other revenue for the government, and creates about 394 jobs. Most of the lawmakers we visited mentioned that the TAB lobbyists such as Scott Norman or Ned Muñoz visit them frequently to make sure they understand issues which can drive up the cost of building a new home and the unintended ramifications of otherwise well-meant proposed legislation. Our membership to EPAB supports the lobbying efforts of TAB and NAHB. I personally feel very fortunate to be building homes in the 8th fastest growing state in the nation. About 17% of all new construction nationwide happens in Texas. Thanks to TAB’s efforts, Texas is one of the best states in which to do business. Only certain subcontractors require a license, we do not have to put sprinkler systems in our homes, we do not pay linkage fees, county authority is limited, MUDs (Municipal Utility Districts) make developing feasible in certain areas and we have a voice in many issues such as impact fees. Other concerns

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that TAB has addressed recently are the lemon law, tree ordinances, energy codes, and workforce legislation, just to name a few. In summary, we asked our legislators at the Capitol during legislative session to: • lower property taxes • prevent sales tax increases • protect the MUDs • increase funding to educate trades • guard consumers from scam artists • keep spending in infrastructure • prevent municipalities from dictating expensive regulations • follow our constitution using our permit fees only to finance providing the service of building permits and inspections • refrain from fixing what is not broken (mechanics lien system), among other issues. I hope that if you haven’t participated in Rally Day yet, that you will do so in the future. Attending our events and helping members in any way you can continues to be critical in supporting our association so we can achieve even more.


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Builders Outlook

Executive’s Message

2019 Issue 4

Trash can be a lot of things

time I spoke up. In the same vein I must tell you about a vote taking place on May 4. You may not have realized it but Ray Adauto, there’s a school board election in a lot of districts and a City of El Paso Executive Vice President referendum on what is known as Lost Dog Trail, a large parcel of land EPAB in Northwest El Paso. I have found out through my involvement in this issue that most of the people I know are unaware of that proposition. I was walking into the Walmart What is it? It involves a parcel of land located near Cielo Vista mall when a that is currently zoned for woman came out from the store with development and incorporates the a McDonalds drink. She took the City’s new “tool”, a Tax Increment wrapper off the straw and just threw it Finance Zone, or TIRZ, to govern the on the sidewalk near the door. development. Wikipedia describes a Oblivious to what she was doing, but TIRZ this way: Tax increment I wasn’t. I told her “are you really financing (TIF) is a public financing going to just walk away and throw method that is used as a subsidy for your trash on the sidewalk?” She redevelopment, infrastructure, and stopped for a second, looked at me other community-improvement like I was a three eyed monster, and projects in many countries, including as I bent down and disposed of it in a the United States. The issue put forth trash bin just a couple of feet away. is do we develop this land or leave it She casually walked away and at a desert? distance she said, “who are you, my Ok, sound confusing? It can be daddy?” I responded that if I was her because of potential special interest daddy, she wouldn’t have done what getting this subsidy. The norm, as she did. Ironically there was a guy stated above is for asking for change from the shoppers REDEVELOPMENT, not new who witnessed the whole thing, and development. So, this vote has been he said “no entienden” or in effect placed because there are people who “they never learn.” The lady wasn’t a don’t want development of any kind in kid, but an adult who thought nothing some areas, like this parcel that of letting someone else pick it up. contains trails for hiking and biking. Happens more than we know but this On the other hand, we are in the

business of development and so even with restrictions this development, proponents say, is good for the economic and business reasons our city must have. After all we have a shortage of lots, right? It’s taking longer and longer to get subdivisions approved. This argument would be black and white just a few years ago. Not today. The fact that it’s a TIRZ has some in our industry concerned that not all industry professionals will get a fair chance at the parcel. The city has done some deals that a lot of people feel leaves them out and the public holding the bag with no representation. So yes, there’s more to it than black or white, development or no development. So back to the trash dumping woman. Her lack of decency and caring is a lot like those citizens who don’t vote. I am not advocating one way or another but both inactions are trash. Not informing yourselves, especially those of us directly involved in new home construction, is shameful and trash of the highest level. Having the attitude of the trash lady is what is breaking down our system. And here I am being your daddy as well. Get informed, then vote. It’s a privilege many in the world don’t have.

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2019 Issue 4

National Builder News Lower Interest Rates Help Boost New Home Sales Sales of newly built, single-family homes rose to a seasonally adjusted annual rate of 692,000 units in March after a slightly revised February report, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest sales pace since November 2017. "These numbers indicate that builders who can produce housing at affordable price points will experience sales growth,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “However, builders are still dealing with a shortage of construction workers and buildable lots, which limits housing affordability.” “We saw a large gain at lower price points where demand is strong. In March of 2019, 50 percent of new home sales were priced below $300,000, compared to 39 percent in March of 2018,” said NAHB Chief Economist Robert Dietz. “These are the price points that are attractive for renters seeking to become homeowners.” A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the March reading of 692,000 units is the number of homes that would sell if this pace continued for the next 12 months. The inventory of new homes for sale was 344,000 in March, representing a 6 months’ supply. The median sales price was $302,700 with strong gains in homes sold at lower price points. The median price of a new home sale a year earlier was $335,400. Regionally, and on a year to date basis, new home sales fell 17.6 percent in the Northeast, 8.1 percent in Midwest and 5.9 percent in the West. Sales rose 9.6 percent in the South, where 58 percent of new home sales occurred in March.

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EPAB MEETINGS

2019 Issue 4

Members learn about plans for Sun Bowl stadium and teams

The April general meeting sponsored by Palo Verde Homes, featured UTEP Athletic Director Jim Senter. Senter enters his second year as A D in a position he didn’t anticipate but understood. “I had worked with Tim Floyd before, and I figured that at least I knew one coach here,” Senter told the audience. “But on my first day on the job I heard a radio report that Floyd had announced his retirement after the game that day.” “I called my office to verify and sure enough he’d quit without telling me,” Senter continued. “That was my first day,” he said to everyone’s chuckle. Jim Senter entered the UTEP position after the retirement of long time AD Bob Stull. “I have to say that Bob did a great job while here, and we have a lot to be grateful to him for,” Senter said. He went on to tell the

audience that the next steps for UTEP isn’t just buildings but building teams and a winning effort. “College sports is a different animal now days, you have maybe 25 recruits for football and by year four you may have only one or two remaining from that class,”. “How would you like to happen to you in your business,” he asked. Aside from the job he must do the A D also talked about improvements to the facilities, particularly to the football stadium. The university is going to upgrade the press box, construct new seating in the captain’s club, and bring in some high-end club seating. His other concern is the state of the locker rooms. The meeting was entertaining and informative. Look for our next general meeting in June.

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2019 Issue 4

Builders Outlook

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Economic Forescast Elliot Eisenberg Economic & Policy Blog

Over the last few years large social media and search engine firms have been routinely accused of trading and selling our personal information, propagating toxic content, weaponizing user information, and more generally eroding our privacy. Last October, Tim Cook, CEO of Apple, made many of these same claims while bashing technology companies in front of a receptive audience in Brussels. Yet this is not simply a battle between tech billionaires. Rather, it is a result of a serious design flaw plaguing the Internet. It is no coincidence that Google, Facebook and Twitter, which each receive more than 85% of their revenue from advertising, are the ones most frequently accused of malevolent activity. Conversely, Microsoft, Amazon and Apple, whose revenues come from selling goods or services or both, fly almost entirely under the radar. It’s because Facebook and Google make their money by giving

Free Isn’t Really Free away their products to one group and then selling advertisements to an entirely different one. Think about why price matters. It’s how the market rations resources. A price tells sellers how much to invest in a product and it helps consumers decide whether a product is worth buying. But a price of zero messes this all up. Free is great for generating volume and user engagement, but it is a disaster when it comes to quality control. Some firms offer free entry-level products in the hope of up-selling their users a later date, like Adobe, and some services like Wikipedia are free due to thousands of hobbyists who love what they do and expect no monetary compensation. By contrast, free is the entire business model of search engines and social media. To generate advertisements, they must maximize users and engagement, and that requires low barriers, if any, to their platforms. And to maximize advertising revenue, the platforms must learn as much about their users as possible. This pits volume and

revenue against quality and confidentiality. The result is the steady erosion of privacy. We all know that free services are anything but. Users not only give away their data, but as a result are exposed to lots of useless and occasionally harmful content, such as phishing attacks which result because senders of email don’t have to pay (buy stamps) to get email delivered. Similarly, there are always fake, or paid-for reviews mingled with legitimate ones on “free” services such as Yelp. And there is always a steady stream of manipulative or fake news that contaminates news feeds. In a world where communication is free, bad communication beats good communication because good communication is costly. But it doesn’t necessarily have to be this way. Apple prioritizes user privacy and content quality, is more restrictive about what apps can run on its devices and has humans curate content. But that is one reason why Apple devices and products cost more than similar such Android offerings. TV offers

another example. Network television was once an ad-supported oligopoly that aimed its content to the lowest common denominator. But HBO and now Netflix have shown that viewers will pay for quality content that is void of advertisements. Pandora and Spotify offer ad-free music streaming services for a monthly fee. And new technologies now make it easy to charge tiny amounts online, making it possible to bypass “free” services if desired. But there are problems: Apple’s market share has stalled as new potential buyers balk at its high prices, while Netflix, Pandora and Spotify have yet to turn a profit. Lastly, search and social media outlets that might, in the future, charge will have a hard time becoming viable due to the large network effects that “free” incumbents enjoy. That said, some broad-based firm will eventually succeed and show that free need not remain the reflexive internet model of the future and in the process, our privacy concerns will hopefully wither away.


BUILDERS OUTLOOK • EPAB ON THE SCENE Mother Nature smiles on Spring Tournament Editor’s note: The long-range forecast for April 17 said sunny skies and some potential for wind. What hit us was a mixture of winter weather instead. The skies over Butterfield Trail golf course on the Haskins Electric EPAB Spring 2019 golf tournament looked ominous as the teams arrived. The wind had started to blow increasing with every minute as we neared the start. Looking out over the Franklins you could see clouds forming, some really dark and full of rain, others just dancing with the wind. You would think that with this type of weather that the golfers would come prepared for the potential weather, some did, while others took “spring” literally. Those brave souls soon found refuge at the Butterfield Trails pro-shop looking and cleaning out the inventory of jackets and wind breakers. The largest field of entries soon were on their way to challenge the course. Twentyfour teams signed up for the fun and by the end of the day eighteen teams finished, talking about the course and the weather. “I think overall we need to remember this is El Paso and the weather can change in just five minutes,” said Chuck Haskins, owner of the tournaments presenting partner Haskins Electric. “You have to be prepared for just about anything, and today Mother Nature threw it out to us,” he continued. Some teams were never prepared for the biting cold and rain that hit them early. “Sorry to say but this is just one of those days in our spring where only the brave stay out,” said golf chairman Sam Shallenberger. “those that are here are having a good time anyway,” Sam continued. The tournament is scheduled months earlier with the understanding that one is playing roulette no matter what date you pick in March or April. “We had a great turnout and some interesting play today, but like we say, it’s about having fun. Remember the worse day out at the course is better than the best day at the office,” John Chaney let on. He laughed as his teammates decided they had enough and went to a warm place. “It was interesting, we had wind, rain, sleet, dirt, and finally sunshine, all in a few hours,” Ray Adauto told the Outlook. “We appreciate the brave groups and the brave hole sponsors who stayed out during it all,” he continued. One of those brave souls was Kathy Carrillo, Western Heritage Bank and the Hole in One sponsor. “We got help from some larger brush and trees, so it wasn’t that bad, sometimes a little warm actually,” she said. Inside the group of volunteers tried to stay warm. Margaret had Josie Ledesma, Patricia Martinez-Alvidrez, Sandra Lucero, Pam Ashworth, and Arturo Delgado. “We ventured out but decided it was way too windy and cold,” Josie told the Outlook as she and the others kept warm inside the facility. All in all, the tournament was completed, the teams ate and won some prizes all the while recalling the day as if in combat. “We had a great time. We’re in Texas and that’s what we do, enjoy golf in any weather,” said Scott Whisenant, StrucSure Home Warranty. Our thanks to Haskins Electric, HUNT, Morrison Supply, WestStar, Western Heritage Bank, IES Residential, Del Rio Engineering, New Era Foam, Massey Johnson, HUB international, BIC Homes, and StrucSure Home Warranty. The staff at Butterfield Trail Golf Course are led by head Pro Tim Krebs. “We enjoy the special relationship we have earned with the Association, and we look forward to many more opportunities,” he said. The EPAB is preparing its Fall golf tournament tentatively scheduled for October. Come ready and come prepared. Look for additional information later in the year.

2019 Issue 4


‘Rebuilding Together’ volunteers build better community

Angelique Roman was asked to chair the Community Outreach Committee and she found herself with the daunting task of dealing with volunteers and another volunteer organization, Rebuilding Together. Some of you may remember Christmas In April with who the EPAB used to volunteer with. That organization was shuttered and Rebuilding Together grew out of it. The task that was being asked of the association moved directions numerous times before we finalized the house we got to work on. This house was in northeast El Paso and belongs to a lady who needed help. As you can see in the photos of the event, we had some pretty good help thanks to the generosity of our members. “I would like to thank everyone who came out to help, and I want to thank our paint

‘Young Designers’ winners announced It starts when the school year starts and ends in the following spring. It’s a lot of work but it’s worth the effort. Only three will get a letter that starts with “On behalf of the members of the El Paso Association of Builders congratulation on finishing first (second or third) in the Young Designers Scholarship competition for 20182019.” Of the dozens of students in the El Paso Independent School District (EPISD) and Socorro ISD only a group of them will finish the work. Those that do seem to always rise to the top, sort of the crème de la crème. If you’ve been fortunate to see some of the students work, you soon realize a couple of things; these kids are smart, and these kids are dedicated. Of course, a lot of this goes along with having excellent instructors. “I think that we’ve been involved for so many years in YD that it’s hard to know the true longtime impact we’ve had over those years,” YD Chairman Emeritus John Chaney told the Outlook. “We have kids who are old enough to have their kids taking classes,” he continued. The winning entrees this year came from EPISD and each one represented the district extremely well. Gus Loy, of Loyalty Homes, has given onsite tours to the students for many years. He

joined Ray Adauto at the district wide award ceremony and was honored himself. “Those of us at CCTE EPISD wanted to say thanks to Mr. Loy for his support and excellent presentation to our students,” said Cecilia Orozco the instructor at CCTE. The district presented Gus with a plaque honoring his contributions. The winning entrees this year were: First place, Isaac Vera - Austin HS; in second place Shirley Lopez - Franklin HS and in third place Paula Chacon Coronado HS. There was one point separating third place from a fourth place, again showing the consistency of the work the students did. In accepting his first place $1500 scholarship award Isaac told the Outlook that he was surprised and grateful for the award. “I want to tell everyone at the association how much this means to me,” he said. All the awards come from a dedicated fund handled through the El Paso Community Foundation established by John Schatzman and Jorge Herrera Sr.

El Paso Association of Builders

experts from Sherwin Williams, who through Cruz Lopez lent their expertise to us,” Angelique told the Outlook. “The Sherwin Williams team had scouted the house out, asked the owner to move some trash and stuff in order for us to do the painting,” Roman said. In the effort to clean and do some muchneeded painting the Rebuilding organization issues an estimated amount of paint. It was clear that the amount wouldn’t be enough, so the Sherwin Williams team contacted the nearest SW store and brought out what was needed. “A huge heartfelt thanks to all of you for helping with the community project this weekend! The talent amongst this group is second to none! It was great to see us come together as one unit and help Ms.

Castillo get the outside painted and her yard cleaned. I know she was extremely grateful for the help. Thank you for giving your time, sharing your talents, and showing the younger generations how important it is to give back to our community,” Angelique wrote to the team. Those who volunteered and showed up: Ted Escobedo, Eduardo Blanco, Patricia Martinez-Alvidrez, Federico Alvidrez, Jr., Heaven Leigh Alvidrez, Savannah Lindau, Jaime Gonzalez and sons Jaime Joaquin and Benjamin Alejandro, Cruz Lopez, Helen Lopez, Gabe Garcia, Angelique, Gaby and Matthew Roman, Letti Navarrete, Alex Aguirre, Margaret and Ray Adauto. Special thanks to Thomas Gabriel as well.


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Builders Outlook

2019 Issue 4

#Real Texas builders Š

www.elpasobuilders.com

The El Paso Association of Builders encourages you to work with our members. Builder members as of January 30, 2019 Althon Investments, LLC Jose Luis Martin Bain Construction Scott Bain Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes, LLC Sergio Cuartas Blue Sage Homes, LLC Jamie E. Gonzalez Blue Star Construction Carlos Villasana Bowling Construction Randy Bowling Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Cisco Homes LLC Francisco Arroyos III Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi CS Custom Homes Steve Gonzalez Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers D B Innovations, LLC Dan Berry Dawco Home Builders Walter O. Lujan Deal-2-Deal Homes Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Bacquera E. Valencia Land Development LLC Eddie Valencia Eclat Homes & Design Veronica Guerra Edward's Homes, Inc. Eduardo Fernandez EPT Bella Custom Dream Homes, LLC Leti & Javier Navarrete EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy Guel Construction Rudy Guel Hakes Brothers LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry ICON Custom Home Builder, LLC Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Lloyd Hamilton Construction Lloyd Hamilton, III LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Maravilla Homes Victor Robles Medlock Commercial Contractors, LLC Steve Medlock Metro Homes Judith Arrunada Pacifica Homes, Inc. Juan Jose Vasquez Padilla Homes Misael Navarrete

Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Rio USA Freddy Klayel Rosewood Design & Build Brianna Barnes Santana Custom Homes Fernando Santana Southwest Land Development Serv. Doug Schwartz Spanish Oaks Custom Homes Juan R. Saenz The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp. Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Uptown Homes, Inc. Francisco Baquera Valance Construction, LLC Oswaldo Prieto Vista Del Sol Architectural Design Luis J. Lopez Will Harvey Development Will S. Harvey Winton/Flair / Accent Homes Herschel Stringfield ZIA Homes of El Paso LLC Preston Brown Associate members as of January 30,2019 150 Sunset Danny Heredia 2-10 Home Buyers Warranty Leslie Schey 4 Tech A/C Service Enrique Hernandez 84 Lumber Ernie Chavez 915 Siteworks, LLC Hugo Jasso A Plus Remodeling & Repairs Martin Arroyos ABC Supply Co., Inc. Larry Eck A C Refrigeration, LLC Angel Cabrera Acme Brick Company Brent Smith Adams Moulding & Lumber Tom Swahlen Agustin Favela Concrete Agustin Favela Alden R & R Services, LLC Alejandro Dena Allbrite Electrical Carlos Nunez Alpha Asphalt Gabriel Chavez Alvarado Plastering & Stucco, LLC Jorge Enrique Alvarado Amelia's Janitorial Services Amelia Gomez Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Bank of Texas Ray Owen Baron Supply David Trammell Barragan & Associates Benito Barragan Barraza Drywall Corp. Ignacio Barraza Bassett Woodworks Danny Murillo

Beasley, Mitchell & Co., LLP Brad Beasley Bella Vista Realty Grisel Ortega Belmont's Air Conditioning, Inc. Rafael Belmonte Big A Construction Thelma Vasquez BMC Select David Quintana Boise Cascade Mike Flores Border Construction Specialties Ricardo Yvellez Border Solar Javier Ruiz Bordertown Carpets Brian M. Abraham Builders Source Appliance Gallery Sandra Lucero Bukaty Financial Companies Group Ruth Rivera C. D. Lee/Britton Insurance & Bonding Anthony Landavazo CMF Carlos Munoz Cabinet Masters Mike Robles Cadence Lending Group Carolyn De Leon Carpet Warehouse Erez Belkin Castillo Electric Jose Del Val CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Centricity Brent R. Morgan Century 21 The Edge Scott Kesner City Bank Texas Bob Kotarski City Lights Thomas Brown Citizens Loan Center Jim Easley Cognent, Inc. Martin Paredes Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde Copenhagen Imports Flemming Carlsen CQC Testing and Engineering, LLC Jaime Rojas David Hernandez Cabinets David Hernandez David J. Ellis Fee Office for Sierra Title David J. Ellis De La Torre Iron Works Alfredo de la Torre Del Sol Title Company Hector Phillips Delek US dba 7 Eleven Sonja Scanlan Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Desert Quest Plumbing Hector Gonzalez Designer's Mart Valerie Edmiston Diaz Services, Inc. Emmanuel Diaz Dominguez Insurance Agency Victoria Dominguez Garage Doors and More Miguel Moran Dorney Security John Dorney Dunn-Edwards Paints Nathan Gordon DWS Building Supply Sabrina Voorhies EDLR Plastering Eduardo De La Rosa E.F. Building Materials, Inc Efren Fraire ERA Sellers & Buyers Karla Rayos

ESS Environmental and Safety Solutions Jose L. Garcia Ramirez Eagle Custom Cabinets Juan Benabidez Eagle Roofing Products Scott Aguilar Edgar's Flooring Edgar Enriquez Edmund Esper Edmund Esper El Paso Audio Video by Design Joe Gutierrez El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Gilbert Pedregon El Paso Times Sal Hernandez, Justin Riley El Paso Truss Luis Mendiola El Paso Water Softeners Rebecca Estrada El Paso Winnelson Rene Goldfien Electrolux NA Adger Colley Elizardo Garcia Electric Elizardo Garcia EZE-R-DESIGNS Leticia Mata Farmers Ins. Mercedes Ruiz Agency Mercedes Ruiz Felipe Rocha Construction Felipe Rocha Ferguson Enterprises Inc. Albert Holguin First American Bank Louis Sauceda First Light Federal Credit Union Lorenzo Revelez First National 1870 Ernesto Avila Firth, Johnston, Bunn & Kerr Jay Kerr Forge Factory Strength & Conditioning Edmundo Portillo Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Ricardo Aguilar /Cristina Sheldon Franklin Door and Trim Jesse C. Brown G2 Ram Electric Luis Cano GCC Sun City Materials, LLC Antonio "Tony" Chavez GE Appliances Christine R. Villanueva G & G Enterprises Gen. Contractor Juan F. Garcia GECU- Greater El Paso Credit Union Danny Galindo GEPAR-Greater El Paso Assoc. of Realtors Jason Sanchez Goodman Mfg. Jorge Guajardo Go Pro Refrigeration Humberto Diaz Great American Insurance Group Julie Tomlinson Greater El Paso Chamber of Commerce David Michael Jerome H P Roofing & Construction Heriberto Prieto Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Hector De La Canal Real Estate Group Hector De. La Canal Hector Phillips fee Office for Sierra Title Hector Phillips Hercules Industries John Chaney Hernandez Roofing Concepcion Hernandez Home of Texas Amanda Eason Homes of El Paso Riley Stephens


2019 Issue 4

11

Builders Outlook

Home Pros Real Estate Group Penny Moore Home Sphere, LLC Chris Hoag HUB International Luis Rosas Imperial Construction Alexandro Garcia IES Residential Joshua Garnica Interceramic Tile & Stone Gallery David Holguin The Iron Snail Inc. David Zuniga J. B. Laminates Gina Rodriguez J. C. Balcorta Painting Cruz Balcorta J. F. Plastering Juan Florez JFM Enterprises, Inc. Jaime Flores J & H Concrete & Post Tension Jorge Herrera Jack White Building Specialties Claudia Lardizabal James L. Ellis, CPA, PC Jim Ellis Jimmy Garza Emergency Water Removal Jimmy Garza Jobe Materials, LP Charlie Tellez Joe Bernal Ins. & Financial Services, Inc. Joe M. Bernal Jose Moreno Dry Wall Jose Moreno Juan Carlos Perez Grading Juan Carlos Perez Keenan Supply Nancy Rivas Keller Williams Susan Flores Keller Williams Mo Goodarzi LOI Engineers Bernardino Olague L & P Building Supply Denise McConnell Legacy Real Estate Serv./TTI Prop. Man. Patrick Tuttle Leon Real Estate Jorge Leon Lone Star Title Co. of El Paso Sam Trimble Lowes Home Improvement Johnny Rodriguez Loyas Shutters Alfredo Loya Magicstone Marco Gomez MAK Roofing & Construction Felix Vizarreta Marlo Building Services Roberto Martinez

Masco Contract Serv dba Gale Insulation William Homan Masonite International Jesse Carlson/ Bob Westby Massey Johnson Josie Ledesma McCoy's Building Supplies Doug Danner Miguel Sanchez Cano Miguel Sanchez Cano Minerva Al-Tabbaa Realtor Minerva Al-Tabbaa Mini Concrete Materials Joe Soto Moen Frank Graf Modern Exteriors Hector Macias Monster Link Marketing Raul Mendoza Moreno Cardenas, Inc. Roberto Moreno Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen New American Funding Tania Guzman New Era Foam George Tollen New Start Insulation Jose Carreon Oropeza Concrete Angel Oropeza Parra's A/C and Heating Service Aureliano Parra Pate & Appleby, LLP Richard De Santos Patriot Mortgage Randy Bowling Paylocity Corporation Andy Moran Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Commerce Mortgage Stephen Sepulveda, Gilbert Pedregon Polar Mechanical LLC Francisco Amezquita Post Tension Steel Dennis Moore Powerfoam Insulation Arnie Pedersen Prewire of El Paso, Inc. Steven Drury Prosperus Title & Escrow Georgina Hernandez Q Martins Plumbing Jose Martinez Quality Granite Hector Porras

RGR Roofing, LLC Mario Rodriguez Ramon Romero Painting Ramon Romero Randall Smith, CPA Randall Smith Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey Rey Construction Manuel Reyes Richman Group Affordable Housing Corp. Kevin Hoffman Rito Magallanes Rito Magallanes Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Mike Ruffin SBNG, P.C. Tyler Smith S & J Drywall, LLC Yair Jalil & Sergio Jalil Saldivar Electric, Inc. Martin A. Saldivar Sarabias Blue Sanitation Monica Brown Segura Framing Erika Segura Senercon Border Solar Javier Ruiz Senpai Training and Development Leonardo Corral Sergio Herrera Framing Sergio Herrera Serrano's Construction Juan Serrano Service Master Commercial Heidi Avedician Sherwin Williams Paint Cruz Lopez Sierra Title Company Angelique Roman, Marielsa Pulido Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing Ted Escobedo Soil Mechanics Lorenza Escareno Solar Smart Living Larry Perea Southwest DĂŠcor El Paso Corporation Chris Matthews Southwestern Prewire Joe Trejo Spectrum Technologies Miled Daou St. Mary's Custom Shutters Dolores Lopez

Startech Heating and Air Conditioning Luis Procter State Auto/Association Insurance Solution Danner Bethel Stewart Title of El Paso Cindy Bilbe Stone City Rocks Chris Baca StrucSure Home Warranty Scott Whisenant Supreme Lending Lisa Wren Su Casa Magazine Edwin Rosario Sun City International Doors Jorge Carmona Sun City Winnelson Dean Moore Sun West Windows and Glass Ernie Hernandez Team Juan Uribe, LLC Juan Uribe Texas Gas Services Maria Ortiz Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado The Home Systems Heating & Cooling, Inc. Jesus Chain TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez United Site Services Ramon Armendariz USA General Contractors Javier Olmos VMP Painting Victor Prieto Value Stone Isabel Chacon Vantage Bank Josie Cantu Vision Consultants, Inc. Kelly Sorenson W.W. Sales Eric Hoppes Western Heritage Bank Kathy Carrillo WestStar Bank David Osborn WestStar Title Pam Ashworth Whirlpool Gwen Walker Wolf Air Arturo Alcantar X Construction Emmanuel Chavarria

El Paso Disposal

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12

Builders Outlook

2019 Issue 4

What makes a builder a Real Texas Builder? ©

In Texas anyone with a truck and a hammer can call themselves a builder. Protect your biggest investment by choosing a Real Texas Builder, a member of the El Paso Association of Builders. A Real Texas Builder is a professional who invests in our community and works hard to build you the best home money can buy. Real Texas Builders are genuine, legitimate, educated and committed to the advancement of the home building industry.

Visit www.elpasobuilders.com for a list of Real Texas Builders. © 2018 El Paso Associa on of Builders •  6046 Surety Drive • El Paso • Texas • 915­778­5387


2019 Issue 4

13

Builders Outlook

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

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Builders Outlook

2019 Issue 4

CITY BUILDING PERMITS AND INSPECTIONS

Landmark, historical properties challenging yet rewarding The City of El Paso’s landmark and historic districts enhance and define our unique identity, quality of life, and economic vitality. The City has a rich and unique architectural patrimony defined by great architects such as: Henry Trost, Mabel Welch, Otto Thorman, and Edward Kneezel. It is the job of the Phillip Etiwe, Historic Preservation BP&I Director, City of El Paso Office to insure that this architecture remains intact for generations to come. As part of the City’s vision for safe and beautiful neighborhoods, the Historic Preservation Office (HPO) reviews any proposed modification to the exterior of a building or site located within one of nine historic districts or independent historic structures. In each case, the guidelines help the owner maintain the accuracy of the property. If the owner wishes to do work that does not comply with the guidelines, s/he has the option of presenting the proposal to the Historic Landmark Commission (HLC) for review and approval. The HLC can approve, approve with modifications, or deny the application. Typical reviews conducted by the HPO staff include landscaping, painting, re-roofing, repair of walks, driveways, fences, and replacement of windows and doors. About 75% of all applications that come to the HPO are handled administratively. Owning a designated property can be challenging yet rewarding. This challenge does not mean the property owner is restricted from updating the building’s dated elements; it means that the building is of such value that its preservation and maintenance are carefully

reviewed for accuracy by our passionate and experiences staff. We appreciate owners of historic properties and would like to partner with them to maintain and conserve the city’s rich heritage! To help facilitate understanding of historic preservation the HPO staff often makes presentations to homeowners, neighborhood associations, business groups, and others so that the process is easy to understand and encouraged. Please feel free to contact us for additional information or if you would like for us to present this valuable information to your organization.

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DESIGN WITH NATURAL GAS IN MIND. Nothing is more attractive to homebuyers than the right mix of comfort and value. You can provide both when you build homes that have natural gas. Natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower operating costs than their electric counterparts, and natural gas kitchens sell themselves. Let us help you plan for natural gas right from the start.

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For more information: ElPasoNewBusiness@TXGas.com William Nieves: 915-496-6126 Jorge Sejera: 915-680-7216 Please continue to direct service line and meter set requests to the Texas Gas Service

Builder Services atslimgas-metroElPaso@onegas.com slimgas­metroElPaso@onegas.comoror 1­866­206­9587. Hotline at 1-866-206-9587.


Builders Outlook

2019 Issue 4

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038 ■ EXECUTIVE OFFICERS PRESIDENT Sergio Cuartas VICE PRESIDENT Edgar Garcia SECRETARY Sal Masoud EXECUTIVE VICE PRESIDENT Ray Adauto PAST PRESIDENT Edmundo Dena ■ COMMITTEE CHAIRS: ASSOCIATES CHAIR Luis Rosas GOVERNMENT AFFAIRS Sal Masoud GOLF TOURNAMENTS Sam Shallenberger FINANCE COMMITTEE Kathy Carrillo/Treasurer COMMUNITY OUTREACH Angelique Roman LAND USE Sal Masoud EDUCATION Patrick Tuttle INDUSTRY PROMOTIONS Ted Escobedo ■ ADVISORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr ■ BOARD OF DIRECTORS Builders: Jaime Gonzalez, Blue Sage Homes Lee Gillett, Classic American Homes Lydia Mlouhi, Crown Heritage Homes Dan Berry, D B Innovations,LLC Delton Deal, Deal-2-Deal Eder Gallardo, Edwards Homes Leti Navarrete, EPT Bella Custom Dream Homes Kathy Parry, Hunt Companies Samira Gonzalez, Icon Custom Home Builders Laura Loy, Loyalty Homes JJ Vasquez Pacifica Homes Trevor Turner, Rassette Homes Fernie Santana, Santana Homes Jacob Barde, Tropicana Homes Associates: Sandra Lucero, Builders Source John Chaney, Hercules Industries Luis Rosas, HUB International Jorge Herrera, J & H Post Concrete & Tension Joe Bernal, Joe Bernal Insurance Patrick Tuttle, Legacy Real Estate Service Aaron Rich, Lone Star Title

Johnny Rodriguez, Lowe's Randall Smith, Randall Smith, Cpa Justin Hahn, Rocky Mountain Mortgage Angelique Roman, Sierra Title Ted Escobedo, Snappy Publishing Patricia Martinez, Stewart Title ■ TAB STATE DIRECTORS Randy Bowling, Life Director Sam Shallenberger Edmundo Dena Gus Loy Don Rassette Luis Rosas ■ NATIONAL DIRECTORS Bobby Bowling, IV Demetrio Jimenez

Honorary Life Members Rudy Guel Brad Roe Wayne Grinnell Don Henderson Anna Gill Mark Dyer Sam Shallenberger Past Presidents Committed to Serve Don Rassette Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling IV Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling III Carlos Villalobos EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization. © 2019 Builder’s Outlook is published and distributed for the

Insurance developed for builders. Developed for builders with the backing of the strongest insurance carriers serving the Texas building industry, our insurance program offers flexible coverage options and rates that are more competitive than ever. As an authorized member of Builder Agent Network©, we’re dedicated to providing builders and contractors with the best-in-class insurance programs, pricing, underwriting, resources and service. Product Portfolio Highlights t “A” rated carriers, several available t (- PêFSJOH Doverage for property damage that results from faulty, defective, or poor workmanship in your work. t (- -JNJUT PG VQ UP . . . Bvailable t Expanded policy form for commercial projects t Builder’s Risk master policies, monthly reporting, annual and one shots t Workers’ Comp - Two highly cost-effective programs t ExDFTT -JBCJMJUZ GPS $PNNFrcial (eneral Contractors t $PNNFrcial Umbrella El Paso, Permian Basin and Surrounding Area HUB International Insurance Services -VJT 3PTBT 915-206-6047 www.hubinternational.com

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